Netherlands Programmes Sustainable Biomass: Smallholder certification in biomass supply chains

Ella Lammers

May 2014

Netherlands Enterprise Agency

Content

1. Netherlands Programmes for Sustainable Biomass

2. Smallholder certification in biomass supply chains – overview study

3. Examples

www.rvo.nl/biomass

3 www.agentschapnl.nl/en/biomass

The NPSB project portfolio

Unprecedented portfolio in terms of variation in biomass projects: • 20 countries • 10 types of biomass

• Different business models: from outgrowers to large scale plantation types

• Import chains and local use of biomass

• Developing biomass production chains:

• Use of various certification schemes

• Consortia include business, NGO’s, researchers

Our support programme

Sustainability and certification

- Guidance documents: how to choose

a certification system

- Food security

Biomass feedstocks

- Alternative feedstocks

- Jatropha assessment

Financing

- Climate financing

- Support on business cases

Monitoring of biomass streams

www.BioESoil.org

6

BioESoil allows farmers and advisors to

calculate the impact on soil quality of bioenergy

production.

https://energypedia.info/wiki/Alternative_Charcoal_Tool_(ACT)

7

Smallholder certification in biomass supply chains

Objectives

To provide insight in:

• Motivations to include smallholders in certified biomass supply chains

• Risks and challenges of smallholder certification

• Strategies to enable a successful certification of smallholders

To develop:

• A background report and guidance manual

Carried out by: CREM

Methodology

• Desk research: literature, pilot project reports, etc

• Input from experts (international survey, interviews)

Including experiences in sectors other than biomass

(e.g. food related initiatives)

Defining a small holder

Not one definition, however, often related to:

Farm size, limited resources, depending on household members for labour, subsistence orientation

In the context of certification/this project:

A farmer that faces significant constraints to become certified that the farmer cannot overcome alone, due to l imited land area, resources, knowledge, skills etc.

Benefits & Challenges For smallholders For business

Benefits • Higher income • Improved farm management • Improved health and safety • Better business opportunities • Empowerment

Benefits • Security of supply • Market access requirements • Improved agricultural practices • Social license to cooperate

Challenges • Financial challenges: high initial costs • Technical: meeting the certification criteria • Imposed cooperation • Limited market perspective

Challenges • Delivery risks • Financial risks: no economy of scale, investment risk

Strategies to facilitate certification

Strategy Actions

Scoping phase - Gain insight in local context - Assess the feasibility of smallholder certification

Preparation phase - Motivate the farmers - Provide short term incentives - Build trust - Strengthen farmer organisations

Implementation phase - Offer group certification - Simplified tools and procedures - Reduce costs (but not no-cost certification) -Increasing access to finance -Training: increase profession skills

Preparation phase

13

1. Provide short term incentives • e.g. technical assistance, logistical support, monitoring of

benefits

2. Build trust • Start with GAP and organisation

3. Strengthen farmer organisations • Be realistic and flexible!

Implementation phase

14

• Offering group certification

a skillfull groupmanager is needed, see ISEAL producer group

models

• Reducing costs

is not no-cost certification, intrinsic benefits are needed

• Simplifying and adjusting criteria and procedures

keep useful records, phases approach

• Increasing access tot finance

smallholders should be timely paid, and e.g. smallholder fund

• Increasing professional skills

a modular approach, peer to peer learning

Jatropha Certification in Tanzania (Diligent)

The project:

• 50.000 outgrowers (20.000 km2) to produce jatropha for the Netherlands market (aviation)

• Hedges and intercropping

• Certification of the smallholders (Netherlands NTA 8080)

Conclusions:

- Sustainability assessments show positive results

- However, certification proofed to be too difficult: EU standards do not fit African realities

15

‘Excess governance’ demand: source of frustration

• Soil quality sampling not feasible

• Certification costs too expensive

Universal standards versus

niche standardization

Local versus international chain

16

Fair Trade certification of jatropha

Focus on 3 fair trade criteria, additional to the criteria in sustainable biomass standards:

- Food security

- Improved access to energy for local

population

- Economically feasible

17

Fair trade (2)

Mixed cropping systems works for food security

Jatropha seedcake is as good fertilizer than organic manure

Business case:

- Local use (mini grids and transport) are best options

- Export of jatropha for international market is not feasible

- Potential for Jatropha local product use with carbon credit ‘export’

18

Bonsucro certification Brazil - Solidaridad

Development of Producer Support & Loyalty Tool

Focus on performance improvements, over time certification

Self assessment tools helps farmers to better understand possible improvements

• Farmers cannot be forced into certification, and no price premiums

• Building trust and a positive agenda on better performance is needed

19

Conclusions

• A scoping phase is essential: the local context and enabling environment

determines the chances of success

• A lot can be learned from other sectors than the biomass sector

• There are benefits in smallholders certification

• Benefits are in the process of certification

• But: certification can be difficult and costly; and is not always needed

• Certification systems play an important role to make smallholders

certification a success

Green matter magazine

Read our magazine!

www.rvo.nl/biomass/ greenmattermagazine

Coming soon:

Analysis of Sustainable Biomass Production and Use:

Lessons learned from the Netherlands Programma Sustainable Biomass

2009 – 2013

Check our website!

www.rvo.nl

21

22

More information?

www.rvo.nl/biomass

Folow us on twitter: @SustBiomass

T: +31 (0) 88-602-9200